.................... moves to amend H. F. No. 721 as follows:
Page 5, after line 33, insert:
"Sec. 5. Minnesota Statutes 2006, section 256B.441, subdivision 1, is amended to read:
Subdivision 1. Rate
determination rebasing. (a)
The commissioner shall
1.5 a value-based nursing facility reimbursement system which will provide facility-specific,
1.6 prospective rates for nursing facilities participating in the medical assistance program.
1.7 The rates shall be determined using an annual statistical and cost report filed by each
1.8 nursing facility. The total payment rate shall be composed of four rate components: direct
1.9 care services, support services, external fixed, and property-related rate components.
1.10 The payment rate shall be derived from statistical measures of actual costs incurred in
1.11 facility operation of nursing facilities. From this cost basis, the components of the total
1.12 payment rate shall be adjusted for quality of services provided, recognition of staffing
1.13 levels, geographic variation in labor costs, and resident acuity rebase nursing facility rates
1.14for the rate year beginning October 1, 2008, and shall collect all data necessary to rebase
1.15rates. Nursing facilities shall submit this data in the form and manner specified by the
1.16commissioner. The rebasing methodology shall recognize increased expenses incurred
1.17by facilities that are not reflected in current payments and shall not be constrained by a
1.18state budget neutrality factor or method
(b) Rates shall be rebased annually. Each cost reporting year shall begin on October
1.20 1 and end on the following September 30. Beginning in 2006, a statistical and cost report
1.21 shall be filed by each nursing facility by January 15. Notice of rates shall be distributed by
1.22 August 15 and the rates shall go into effect on October 1 for one year.
1.23 (c) The commissioner shall begin to phase in the new reimbursement system
1.24 beginning October 1, 2007. Full phase-in shall be completed by October 1, 2011.
1.25EFFECTIVE DATE.This section is effective July 1, 2007.
Page 8, delete section 7
Renumber the sections in sequence and correct the internal references
Amend the title accordingly